Innospec tumbles 30% on weaker-than-expected Q2 earnings
Innospec Inc. (Nasdaq:IOSP) has tumbled more than 30% in today’s trading after reporting after Wednesday’s close its second-quarter net income had plummeted. For the quarter ended June 30, net income was $0.8 million, or $0.03 per share, compared to $6.8 million, or $0.27 a share, for the same quarter a year ago. Results include and after-tax write-off of $2.5 million, or $0.10 per share, the Newark, Del.-based company said in a statement. The lower net income also includes a goodwill impairment, a restructuring charge and a real estate gain, the company said. Net sales increased 3% to $145.3 million. Analysts were expecting earnings per share of $0.40 on revenues of $147.6 million.
“Our second quarter results reflect in part our decision to write off certain costs related to potential acquisitions rather than proceed with deals that ultimately did not make sense for Innospec shareholders,” said Paul Jennings, president and CEO. “At the operating level, our Fuel Specialties business delivered another solid performance in the second quarter, although its momentum slowed somewhat as we expected.”
Shares are at $16.25 at 10:32 a.m. ET, down $7.24 from Wednesday’s close. The shares have ranged from $13.40 to $30.91 during the past year.
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